Does political crisis in Russia have an impact on the luxury market?← Back

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The luxury goods market is finding its feet and entering a new phase: a new study suggests that that the market is set to slow down for 2014 as it becomes steadier.

US consultancy firm Bain & Co published the study with the Italian association Fondazione Altagamma. Having looked at the market since the beginning of the year, the study established that the market has continued at a similar rate as in 2013. Drawing on this they predict a 2% growth for the worldwide luxury market for the year of 2014, a clear indicator that the market is no longer experiencing the explosive growth spurt it did a few years back.
The study discerned a number of factors which account for this slow-down. The political crisis in Russia has impacted on the Russian market, whilst the decelerating Chinese GDP has meant that there is a slow-down of the luxury market in China. That said, Bain predicts that the Chinese will still make more than 30% of all luxury goods purchases in 2014. Meanwhile, Japan and the US are set to be driving forces in the market. Retail and e-commerce are predicted to do well, with tourism pushing sales figures up.

This is seen as a healthy growth trend, described by Claudia d’Arpizio, author of the study, as a state of “maturity and stabilisation”.